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Actionable news in PPBI: Pacific Premier Bancorp Inc,

Pacific Premier Bancorp, Inc. to Acquire Plaza Bancorp

IRVINE, Calif.--(BUSINESS WIRE)--Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) (the “Company,” “Pacific Premier,” “we,” “us” or “our”), the holding company of Pacific Premier Bank (“Pacific Premier Bank”), and Plaza Bancorp (OTC Pink: PLZZ) (“Plaza”) today announced they have entered into a definitive agreement under which Pacific Premier will acquire Plaza in an all-stock transaction valued at approximately $226.3 million, or $7.29 per share, based on a closing price for Pacific Premier’s common stock of $36.45 as of August 8, 2017. The Company expects the transaction to be immediately accretive to earnings per share and tangible book value per share.

“We are pleased to join Pacific Premier and believe this combined company is one of the most attractive commercial banks headquartered in Southern California”

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Plaza, the holding company of Plaza Bank, is headquartered in Irvine, California, with $1.3 billion in total assets, $1.1 billion in gross loans and $1.1 billion in total deposits as of June 30, 2017. Plaza has seven regional offices located in Irvine, Manhattan Beach, El Segundo, Pasadena, Montebello, San Diego and Las Vegas. The transaction will increase Pacific Premier’s total assets to approximately $7.7 billion on a pro forma basis.

Steven R. Gardner, Chairman, President and Chief Executive Officer of Pacific Premier, commented, “Entering Los Angeles County has been a key focus of our long-term strategic plan to build Pacific Premier into the leading commercial bank headquartered in Southern California, and this transaction will enable us to achieve that goal in a way that makes strategic and economic sense for our franchise. With the additional operational scale and increased market presence in Southern California, we believe the combined company is better positioned to take advantage of growth opportunities and generate stronger returns for our shareholders.”

“We are pleased to join Pacific Premier and believe this combined company is one of the most attractive commercial banks headquartered in Southern California,” said Rick Sowers, President of Plaza. “On a combined basis, Pacific Premier can offer greater capital resources and an expanded array of products and services, which we believe will be beneficial to our clients and our employees. We are excited about the opportunities that will be created from this merger and look forward to the combined success going forward.”

The earnings per share accretion estimates are based on estimated costs savings of approximately 35% of Plaza’s non-interest expense, with 75% of the cost savings phased-in during 2018 and 100% phased-in during 2019. The earnings per share accretion estimates do not include any assumption of revenue synergies.

Transaction Details

Under the terms of the definitive agreement, upon consummation of the transaction, holders of Plaza common stock will have the right to receive 0.200 shares of Pacific Premier common stock for each share of Plaza common stock they own. Based on a $36.45 closing price of Pacific Premier’s common stock on August 8, 2017, the aggregate merger consideration is approximately $226.3 million or $7.29 per share of Plaza common stock.

Existing Pacific Premier shareholders will own approximately 86.9% of the outstanding shares of the combined company and...


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